Greece agrees deal on economic reforms ahead of July repayment

Greece reached a deal on economic reforms with creditors over its €86bn bailout, marking an important step towards avoining a potential bankruptcy in July.

The agreement included a commitment to make economic reforms, including making the tax base wider and unpopular cuts to pensions 2019 and 2020. The measures, confirmed at a meeting of eurozone ministers in Malta on Friday, amount to 2% of Greece's GDP in 2019 and 2020.

“The big blocks have now been sorted out and that should allow us to speed up and go for the final stretch,” eurogroup finance minister president Jeroen Dijsselbloem told reporters after the meeting.

"We have an agreement on these overarching elements of policy in terms of size timing and sequencing and reforms,” he said.

The agreement also clears a path for the International Monetary Fund to join the country's bailout programme.

"We need to see progress on the reform package, on the Greek side, on the behalf of the Greek authorities, and debt relief, credible debt relief commitment for the IMF to go forward," IMF spokesman Gerry Rice said on Thursday.

Greece Prime Minister Alexis Tsipras warned earlier this week that a summit of euro leaders would be needed by the end of April if a deal was not reached soon.

The stricken country faces a €6bn debt repayment in July.